Sunday, September 23, 2012

Get to Know Your Legal Funding Terms

Some companies specialize in legal settlement funding. When people are implicated in a lawsuit, they may apply for a special loan and receive compensation long before they win the court case or create a settlement agreement. Some terms that are unique to lawsuit financing. The following is a list of terms that might be used when someone needs a settlement loan.

In a civil lawsuit, when a party sues someone else, the party suing is usually called the complainant or plaintiff. They must prove wrongdoing by the other person in the lawsuit in order to recover restitution, which is usually given in the form of money through the legal system.

This is the person or persons in a civil lawsuit that is being sued. They are either called a defendant or respondent, depending on the type of lawsuit it is and state in which it is filed. Just because someone is being sued, it does not necessarily mean they have done anything wrong. It is up to the legal process to decide that through a judge or jury trial.

Workmen's Compensation
When someone is injured on the job, the company is responsible for taking care of the worker's medical bills and some of their expenses. The employee may or may not be compensated if they did not follow safety or work guidelines or if the company doesn't have workers' compensation insurance. In some cases, the claim will be denied if the worker did not follow proper procedure in filing paperwork, seeing doctors on an approved list or if they were not scheduled to work at the time of the injury.

This is a question and answer session usually conducted under oath with attorneys present. The purpose is to find out general case information and circumstances surrounding the incidents leading up to the lawsuit. There is usually a court reporter present to make an official record of what everyone says. This professional, unbiased person must be paid for their services by the party taking the deposition.

A settlement is a binding agreement between parties to discontinue the court case under certain conditions. This usually includes a payment to the person suing. The person or business being sued may or may not have to admit any wrongdoing to settle the case. In some cases, the terms of the agreement are confidential.

Settlement Advances
This is a type of cash advance given to an approved plaintiff involved in a case. The finances are usually available within hours or days of applying for financing through a lawsuit financing company.

Settlement Financing
Some companies offer financing to plaintiffs in certain kinds of civil cases. If the application is approved, the person receives an advance on the money they would be awarded in a settlement agreement or if they won their case. The interest rate is usually less than that from standard bank or credit card financing.

In our legal system, civil cases are planned to go through several steps that end in a trial by jury or judge. Some cases go all the way to trial. Others are dropped or settle before this time.

Filing Bankruptcy
Consumers may make a petition to the court asking for all of their debt to be forgiven because they cannot repay it. This is a very complicated legal process that usually requires legal representation.

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